Investing.com - European stocks closed mostly higher Tuesday, as investors awaited a highly anticipated German court ruling on Wednesday, while Fed easing speculation helped lift the market.
At the close of European trade, the EURO STOXX 50 soared 1.15% France’s CAC 40 added 0.89%, while Germany’s DAX 30 rocketed 1.34%.
Germany’s constitutional court confirmed that it will give its ruling on the euro zone’s bailout fund, the European Stability Mechanism on Wednesday, following earlier reports suggesting that the decision may be delayed.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, amid fresh speculation that the U.S. central bank may announce a third round of quantitative easing to boost growth.
Separately, sentiment remained supported after European Central Bank President Mario Draghi unveiled last week details of a bond purchasing program aimed at stemming the debt crisis in the euro zone, dubbed Outright Monetary Transactions.
Financial stocks remained mostly lower, as French lenders Societe Generale and BNP Paribas retreated 2.46% and 0.18%, while Germany’s Commerzbank tumbled 2.13%.
Deutsche Bank outperformed its counterparts on the other hand, with shares climbing 1.26% after announcing plans to cut costs by EUR4.5 billion to boost profitability in the face of higher capital requirements and the euro zone’s sovereign debt crisis.
Meanwhile, luxury goods company LVMH sank 4.42%, extending earlier losses, after rival group Burberry said that full-year profit will be at the lower end of analyst estimates, sending the U.K. company down 18.76%.
Shares in PPR plunged 4.08% following the news, while Christian Dior sank 5.37%.
In London, commodity-heavy FTSE 100 eased lower by 0.02%, weighed by sharp losses in mining and oil stocks, while data showed that the U.K. trade deficit narrowed unexpectedly in July.
Mining giants Rio Tinto and BHP Billiton saw shares plummet 1.34% and 1.43%, while rival group Vedanta Resources dove 3.91%.
Also on the downside, copper producers Xstrata and Kazakhmys declined 2.14% and 2.69% respectively.
Oil and gas major Anglo American pushed lower, plunging 4.27%, while BP saw shares climb 0.40% following reports the company agreed to sell some of its assets in the Gulf of Mexico to Plains Exploration and Production Co. for USD5.55 billion.
Elsewhere, U.K. lenders were mixed. Shares in Lloyds Banking tumbled 1.03% and Barclays dropped 0.35%, while HSBC Holdings and the Royal Bank of Scotland advanced 0.07% and 1.05% respectively.
In the U.S., equity markets followed higher with the Dow up 0.59%, the broad based S&P 500 higher by 0.46% and the tech heavy Nasdaq advancing 0.19%,
Investors are awaiting the German high court decision and New Zealand’s interest rate numbers on Wednesday.
At the close of European trade, the EURO STOXX 50 soared 1.15% France’s CAC 40 added 0.89%, while Germany’s DAX 30 rocketed 1.34%.
Germany’s constitutional court confirmed that it will give its ruling on the euro zone’s bailout fund, the European Stability Mechanism on Wednesday, following earlier reports suggesting that the decision may be delayed.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, amid fresh speculation that the U.S. central bank may announce a third round of quantitative easing to boost growth.
Separately, sentiment remained supported after European Central Bank President Mario Draghi unveiled last week details of a bond purchasing program aimed at stemming the debt crisis in the euro zone, dubbed Outright Monetary Transactions.
Financial stocks remained mostly lower, as French lenders Societe Generale and BNP Paribas retreated 2.46% and 0.18%, while Germany’s Commerzbank tumbled 2.13%.
Deutsche Bank outperformed its counterparts on the other hand, with shares climbing 1.26% after announcing plans to cut costs by EUR4.5 billion to boost profitability in the face of higher capital requirements and the euro zone’s sovereign debt crisis.
Meanwhile, luxury goods company LVMH sank 4.42%, extending earlier losses, after rival group Burberry said that full-year profit will be at the lower end of analyst estimates, sending the U.K. company down 18.76%.
Shares in PPR plunged 4.08% following the news, while Christian Dior sank 5.37%.
In London, commodity-heavy FTSE 100 eased lower by 0.02%, weighed by sharp losses in mining and oil stocks, while data showed that the U.K. trade deficit narrowed unexpectedly in July.
Mining giants Rio Tinto and BHP Billiton saw shares plummet 1.34% and 1.43%, while rival group Vedanta Resources dove 3.91%.
Also on the downside, copper producers Xstrata and Kazakhmys declined 2.14% and 2.69% respectively.
Oil and gas major Anglo American pushed lower, plunging 4.27%, while BP saw shares climb 0.40% following reports the company agreed to sell some of its assets in the Gulf of Mexico to Plains Exploration and Production Co. for USD5.55 billion.
Elsewhere, U.K. lenders were mixed. Shares in Lloyds Banking tumbled 1.03% and Barclays dropped 0.35%, while HSBC Holdings and the Royal Bank of Scotland advanced 0.07% and 1.05% respectively.
In the U.S., equity markets followed higher with the Dow up 0.59%, the broad based S&P 500 higher by 0.46% and the tech heavy Nasdaq advancing 0.19%,
Investors are awaiting the German high court decision and New Zealand’s interest rate numbers on Wednesday.